Bill Status of HB 497   95th General Assembly

Short Description:  BANK ACT-AFFILIATE-COMM ACTIV

House Sponsors
Rep. Joseph M. Lyons-Bill Mitchell-Mike Boland-Patricia R. Bellock-Monique D. Davis, Daniel J. Burke, Chapin Rose, Lisa M. Dugan, Roger L. Eddy, Shane Cultra, Aaron Schock, John D'Amico, Thomas Holbrook, Michael K. Smith, Rich Brauer, Jim Watson, Harry Osterman, Richard T. Bradley and Donald L. Moffitt

Senate Sponsors
(Sen. Terry Link-Susan Garrett-Jacqueline Y. Collins)


Last Action  View All Actions

DateChamber Action
  8/28/2007HousePublic Act . . . . . . . . . 95-0526

Statutes Amended In Order of Appearance
205 ILCS 5/21.5 new

Synopsis As Introduced
Amends the Illinois Banking Act. Prohibits banks from establishing a branch on or adjacent to the premises of an affiliate of the bank if the affiliate engages in commercial activity that could not lawfully be conducted by a bank holding company, a financial holding company, or their subsidiaries. Provides that if an entity attempts to locate an office of an affiliate on or adjacent to the premises of the bank office or branch, then the entity must cease to operate its bank office or branch at that location. Effective immediately.

House Amendment No. 1
Adds reference to:
205 ILCS 205/1006.10 new

Changes the definition of "affiliate". Provides that no bank may establish a bank office or branch on or adjacent to the premises of an affiliate under certain circumstances (previously, the restriction applied only to a branch). Amends the Savings Bank Act. Provides for a prohibition against the establishment of savings bank offices or branches on or adjacent to the premises of certain affiliates.

Senate Committee Amendment No. 2
Deletes everything after the enacting clause. Reinserts the engrossed bill with the following changes. In a provision in the Illinois Banking Act, changes the definition of an "affiliate" to include (i) any company that controls the bank; (ii) any company that is controlled by the company that controls the State bank; and (iii) any company controlled directly or indirectly, by trust or otherwise, by or for the benefit of shareholders who beneficially or otherwise control, directly or indirectly, by trust or otherwise, the bank or any company that controls the bank. Adds a definition for "control" to describe ownership or control by a company. In the Illinois Banking Act and the Savings Bank Act, adds an exemption for provisions concerning the prohibition of establishing an affiliate of a bank or savings bank. Provides that neither a bank nor a savings bank that was not chartered and accepting consumer deposits in the State prior to May 1, 2007 may acquire the right or authority to establish a bank office or savings bank office or branch on or adjacent to the premises of an affiliate of that bank or savings bank by acquiring through purchase, change in control, merger, or any other means the charter, bank office, savings bank office, branch of another bank, or branch of another savings bank. Provides that if a federal agency with authority to approve or disapprove an application for the establishment of a branch in the State or a court of competent jurisdiction determines that any provision is inconsistent with the provisions of the federal Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 and would have the effect of nullifying the laws of the State that permit interstate branching on a reciprocal basis, the provision shall be deemed to be null and void without further review or action being necessary. Effective immediately.

Senate Floor Amendment No. 3
Deletes everything after the enacting clause. Amends the Illinois Banking Act and Savings Bank Act. Provides that notwithstanding any other law of the State, no bank or savings bank may establish or maintain a branch that accepts deposits on or adjacent to the premises of an affiliate of the bank or savings bank if the affiliate engages in any commercial activity that could not be lawfully be conducted by a bank holding company, a savings bank holding company, a financial holding company, a subsidiary of the bank holding company or financial holding company, or a subsidiary of the savings bank holding company. Provides that the provisions shall not apply to an affiliate that operates solely for the purpose of owning or leasing the real estate on which the branch that accepts deposits is located. Provides that the provisions shall not be construed to prohibit the maintenance of a branch that was established prior to May 10, 2007, or the conduct of any transactions that were lawfully being conducted at the branch prior to May 10, 2007. Provides that specified officials may make and enforce reasonable rules, regulations, directions, orders, decisions, and findings as the execution and enforcement of the provisions. Effective immediately.

Actions 
DateChamber Action
  1/30/2007HouseFiled with the Clerk by Rep. Joseph M. Lyons
  1/30/2007HouseChief Co-Sponsor Rep. Bill Mitchell
  1/30/2007HouseChief Co-Sponsor Rep. Mike Boland
  2/1/2007HouseFirst Reading
  2/1/2007HouseReferred to Rules Committee
  2/7/2007HouseAssigned to Financial Institutions Committee
  2/8/2007HouseAdded Co-Sponsor Rep. Daniel J. Burke
  2/9/2007HouseAdded Co-Sponsor Rep. Chapin Rose
  2/15/2007HouseAdded Co-Sponsor Rep. Lisa M. Dugan
  2/16/2007HouseAdded Co-Sponsor Rep. Roger L. Eddy
  2/21/2007HouseAdded Co-Sponsor Rep. Shane Cultra
  2/21/2007HouseAdded Co-Sponsor Rep. Aaron Schock
  2/21/2007HouseAdded Co-Sponsor Rep. John D'Amico
  2/21/2007HouseAdded Chief Co-Sponsor Rep. Patricia R. Bellock
  2/21/2007HouseAdded Co-Sponsor Rep. Thomas Holbrook
  2/21/2007HouseAdded Co-Sponsor Rep. Michael K. Smith
  2/21/2007HouseAdded Co-Sponsor Rep. Rich Brauer
  2/21/2007HouseHouse Amendment No. 1 Filed with Clerk by Financial Institutions Committee
  2/21/2007HouseHouse Amendment No. 1 Adopted in Financial Institutions Committee; by Voice Vote
  2/21/2007HouseDo Pass as Amended / Short Debate Financial Institutions Committee; 019-000-001
  2/22/2007HousePlaced on Calendar 2nd Reading - Short Debate
  2/22/2007HouseAdded Co-Sponsor Rep. Jim Watson
  2/22/2007HouseAdded Co-Sponsor Rep. Harry Osterman
  2/22/2007HouseAdded Chief Co-Sponsor Rep. Monique D. Davis
  2/22/2007HouseAdded Co-Sponsor Rep. Richard T. Bradley
  2/23/2007HouseSecond Reading - Short Debate
  2/23/2007HousePlaced on Calendar Order of 3rd Reading - Short Debate
  3/1/2007HouseThird Reading - Short Debate - Passed 111-000-003
  3/6/2007SenateArrive in Senate
  3/6/2007SenatePlaced on Calendar Order of First Reading March 7, 2007
  3/6/2007SenateChief Senate Sponsor Sen. Terry Link
  3/8/2007SenateFirst Reading
  3/8/2007SenateReferred to Rules
  3/27/2007SenateAdded as Alternate Chief Co-Sponsor Sen. Susan Garrett
  3/30/2007SenateAssigned to Financial Institutions
  4/20/2007SenateHeld in Financial Institutions
  5/1/2007SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Terry Link
  5/1/2007SenateSenate Committee Amendment No. 1 Referred to Rules
  5/2/2007SenateSenate Committee Amendment No. 1 Rules Refers to Financial Institutions
  5/2/2007SenateAlternate Chief Sponsor Changed to Sen. John J. Cullerton
  5/8/2007SenateAlternate Chief Sponsor Changed to Sen. Terry Link
  5/8/2007SenateAdded as Alternate Chief Co-Sponsor Sen. Jacqueline Y. Collins
  5/8/2007SenateSenate Committee Amendment No. 2 Filed with Secretary by Sen. Terry Link
  5/8/2007SenateSenate Committee Amendment No. 2 Referred to Rules
  5/9/2007SenateSenate Committee Amendment No. 2 Rules Refers to Financial Institutions
  5/15/2007SenateSenate Committee Amendment No. 2 Adopted
  5/15/2007SenateDo Pass as Amended Financial Institutions; 007-000-000
  5/15/2007SenatePlaced on Calendar Order of 2nd Reading May 16, 2007
  5/15/2007SenateSenate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Rules
  5/18/2007SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. Terry Link
  5/18/2007SenateSenate Floor Amendment No. 3 Referred to Rules
  5/22/2007SenateSecond Reading
  5/22/2007SenatePlaced on Calendar Order of 3rd Reading May 23, 2007
  5/23/2007SenateSenate Floor Amendment No. 3 Rules Refers to Financial Institutions
  5/24/2007SenateSenate Floor Amendment No. 3 Recommend Do Adopt Financial Institutions; 006-000-000
  5/25/2007SenateRule 2-10 Third Reading Deadline Established As May 31, 2007
  5/30/2007SenateRecalled to Second Reading
  5/30/2007SenateSenate Floor Amendment No. 3 Adopted; Link
  5/30/2007SenatePlaced on Calendar Order of 3rd Reading
  5/30/2007SenateThird Reading - Passed; 059-000-000
  5/30/2007SenateSenate Committee Amendment No. 1 Tabled Pursuant to Rule 5-4(a)
  5/30/2007HouseArrived in House
  5/30/2007HousePlaced on Calendar Order of Concurrence Senate Amendment(s) 2,3
  5/30/2007HouseSenate Committee Amendment No. 2 Motion Filed Concur Rep. Joseph M. Lyons
  5/30/2007HouseSenate Floor Amendment No. 3 Motion Filed Concur Rep. Joseph M. Lyons
  5/30/2007HouseSenate Committee Amendment No. 2 Motion to Concur Referred to Rules Committee
  5/30/2007HouseSenate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee
  5/31/2007HouseSenate Committee Amendment No. 2 Motion to Concur Rules Referred to Financial Institutions Committee
  5/31/2007HouseSenate Floor Amendment No. 3 Motion to Concur Rules Referred to Financial Institutions Committee
  5/31/2007HouseSenate Committee Amendment No. 2 Motion to Concur Recommends be Adopted Financial Institutions Committee; 018-000-000
  5/31/2007HouseSenate Floor Amendment No. 3 Motion to Concur Recommends be Adopted Financial Institutions Committee; 018-000-000
  5/31/2007HouseFinal Action Deadline Extended-9(b) June 8, 2007
  6/1/2007HouseSenate Committee Amendment No. 2 House Concurs 104-000-003
  6/1/2007HouseSenate Floor Amendment No. 3 House Concurs 104-000-003
  6/1/2007HousePassed Both Houses
  6/29/2007HouseSent to the Governor
  8/28/2007HouseGovernor Approved
  8/28/2007HouseEffective Date August 28, 2007
  8/28/2007HousePublic Act . . . . . . . . . 95-0526

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